Hermitage Offshore is appealing the New York Stock Exchange's decision to delist the restructuring company.
The Scorpio-backed platform supply vessel and crew boat owner believes the move is premature due to uncertainty created by its filing for bankruptcy proceedings.
The bourse decided to start delisting procedures after Hermitage made a voluntary petition for reorganisation under Chapter 11 this month.
Hermitage said there is significant doubt as to its ability to operate as a going concern as a result of the filing.
The shipowner added it could make no assurance that the appeal against delisting will be successful, or that there will be any equity value in its stock after the Chapter 11 process ends.
But Hermitage made the appeal "because it believes that the significant uncertainty surrounding the outcome of the bankruptcy proceedings do not allow for a meaningful assessment of the company’s ability to meet the NYSE’s continued listing standards following the completion of the bankruptcy proceedings".
"The initiation of delisting procedures at this time is premature," the company said.
Earlier this week, a US bankruptcy judge approved a framework under which lenders DNB and SEB will return most of the $3.37m they seized from Hermitage hours before its Chapter 11 filing, paving the way for the owner to continue operations.
Rules in place
However, Bankruptcy Judge Martin Glenn set tight conditions on the use of the $2.65m to be returned as the banks seek to protect collateral under the $133m loan they are owed by the Scorpio Group-backed vehicle.
The company has been put on a budget that projects that while the company enters the process with $4.2m in liquidity, the continuing drain on its cash flow will see the coffers turn to red numbers by the end of October.
Four months of talks with the banks in a dire market failed to prevent the need for the bankruptcy action.
As TradeWinds has reported, there appears to be little prospect for Hermitage to emerge from the Chapter 11 process as a going concern, as often happens with owners seeking reorganisation under the US statute.
Hermitage, which owes $133m to the banks, has proposed a timeline under which, within 60 days, it would either sell all vessels at auction or decide to simply surrender the fleet to the two banks.
Bosses have favoured a transfer of assets while the banks looked for backers to inject further equity.
Private vehicles of the Scorpio Group represent about 66% of the company's shareholding.
One third-party buyer has expressed an interest in buying some or all assets.
